August 10, 2017

 

 

 

In my post about a year ago http://www.dpdhl.com/en/investors.html following DHL Parcel's acquisition of UK Mail, I discussed the reasons for investment in a multi domestic (e-commerce) footprint in Europe. So what has happened since then?

Well, from the above slide, it looks like Achim Duennwald and his team have been working hard and have developed the backbone of a pan EU network. While this may seem easy for a player the size of DP/DHL we need to remember where they have come from: at the height of "express fever" important domestic BU's were closed or disposed of. In fact, the Parcel team inherited strong businesses, mainly in Germany, Czech Republic and Poland but also, "white spots" in many "must have" markets.

So far, they seem to have Western Europe "sewn up" with the one notable exception of Italy....which I believe they already have a solution for. What is left, is the growingly important Central and South Eastern European region. Here there is much work to do as there is no, even vaguely realistic, one stop partnership (other than, possibly, AT Post). Options include targeted acquisitions in more important markets and partnerships elsewhere. After over 10 years in this region, I know very well how time consuming, but also how rewarding this can be.

The key thing now, is to move fast, while opportunities still exist. It will be interesting to observe DHL Parcel's next steps, if they are the right ones, DPD and GLS (currently the best pan EU road parcel networks) will have a dangerous challenger for primacy. Any views?